Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert & block trade
Convert crypto with one click and zero fees
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
OTC Bitcoin Wallets Swell Amid Low Volatility: 57,000 BTC Added In A Month – Details

OTC Bitcoin Wallets Swell Amid Low Volatility: 57,000 BTC Added In A Month – Details

BitcoinistBitcoinist2024/08/24 21:03
By:by Semilore Faleti

Over the last month, the price of Bitcoin has been subject to much turbulence, culminating in a total loss of 3.09% according to data from CoinmarketCap. Notably, despite intermittent waves of a price rally, The crypto market leader failed to reclaim the $65,000 price zone in all of August. However, amidst this bearish market, institutional investors have taken the opportunity to strengthen their position in the Bitcoin market.

Bitcoin OTC Reserves Surge At Record Since 2021

In a Quicktake post on CryptoQuant, an analyst with the username caueconomy reported an observation on the purchasing behavior of Bitcoin institutional investors. By monitoring transactions of Bitcoin’s over-the-counter (OTC) addresses, this analyst conferred that these parties have been rapidly increasing their holdings in the past few weeks. 

Institutional investors often prefer OTC trading over exchanges for large transactions as it allows them to buy or sell large quantities of cryptocurrencies without moving the market price significantly. According to caueconomy, these investors have now acquired 57,000 BTC, valued at $3.65 billion, in the last 30 days, representing a purchase scale last seen in 2021.

The analyst notes that this buying activity is unusual as high levels of institutional OTC trading usually occur during periods of high volatility in contrast to low price volatility that has been largely present in the BTC market over the last few weeks.

However, caueconomy postulates that this large-scale acquisition may be targeted at planned token offload in cases of “adverse” market reaction. In contrast, whales and institutional investors’ purchase of large amounts of an asset especially during market lows represents a bullish signal of confidence in future profitability.

Most recently, the premier cryptocurrency experienced a price boost on Friday, after US Federal Reserve Chairman Jerome Powell affirmed an incoming interest rate cuts over the next few months. Bitcoin rose by 4.84% to reach a peak of $64,879, just shy of the prominent $65,000 resistance zone. 

Commenting on this development, Uto Shinohara, financial expert and managing director of an asset investment company Mesirow, predicted a rate cut of 30bps in September and a total rate cut of 95 to 100 bps by the end of 2024.  If such predictions prove true, Bitcoin and other cryptocurrencies are expected to surge in demand in the coming months which could translate into significant profits for institutional investors.

BTC Price Overview 

According to data from CoinMarketCap, Bitcoin trades at $63,905 with a price gain of 5.38% in the last 24 hours. In tandem, the asset’s daily trading volume is up by 64.53% and valued at $42.94 billion. 

OTC Bitcoin Wallets Swell Amid Low Volatility: 57,000 BTC Added In A Month – Details image 0 BTC trading at $63,903 on the daily trading chart | Source: btcusdT chart on Tradingview.com
Featured image from Coinformania, chart from Tradingview
0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!